KOTTAYAM: Antony Mathew, a 56-year-old resident of Irupathilchira in Purakkad, Alappuzha, has been a dedicated paddy farmer for nearly 35 years. He once cultivated paddy on around 200 acres of leased land but in the previous farming season he reduced it to 120 acres. Dishearteningly, Antony is contemplating discontinuing paddy farming in the upcoming season because of its lack of profitability and the consistent losses.
Last season, Antony faced a significant setback as only 180 quintals of paddy could be harvested from a 30-acre segment, falling far short of the expected minimum produce of 600 quintals. That resulted in a staggering loss of approximately Rs 26 lakh. Adding to his troubles, the government, having procured 180 quintals of paddy from him on April 13, is yet to pay Mathew even after three months.
Unfortunately, Antony’s situation is not unique. Hundreds of paddy farmers in the Kuttanad and Upper Kuttanad regions -- spanning across Alappuzha, Kottayam and Pathanamthitta districts -- are facing a severe debt crises, with many contemplating drastic measures like suicide. Over the past three years, more than one lakh farmers have been forced to abandon paddy farming due to unbearable losses and delays in receiving payment for their produce.
According to Supplyco statistics, the number of farmers registering for paddy subsidies dropped from 3,09,845 in 2021-22 to 1,98,440 in 2023-24, which means 1,11,405 farmers quit paddy cultivation over the past three years. This downward trend highlights the dire situation facing paddy farmers in Kerala.
While there are several issues affecting the paddy sector, including climate change, exploitation by rice mills during procurement and low profitability, the immediate reason for the sudden drop in the number of farmers is the delayed payment for procured paddy and the lifting of several supportive measures during the past three years. Large-scale farmers like Antony are badly impacted by the delayed payment while small-scale farmers can’t survive as they entered farming by availing loans from banks.
In addition to payment delays, the state government is gradually reducing its share of incentives, shifting the blame for delays to the Centre and attempting to alleviate its already strained financial position.
“Paddy farmers in Kerala haven’t benefited from the increase in the minimum support price (MSP) by the Union government since the 2021-22 season. The Centre has increased MSP every year since 2021, including the recent increase of Rs 1.17 per kg. However, whenever the Centre increased MSP, the state government reduced its production incentive to keep the total price of paddy at Rs 28 per kg,” said Sonichen Pulinkunnu, general secretary of the Paddy Farmers’ Protection Council.
He pointed out that during the final days of the first Pinarayi Vijayan government, when T M Thomas Isaac was the finance minister, the state government’s production incentive was Rs 8.80 per kg, with the cumulative support from the state and central governments totalling Rs 27.48 per kg.
“The Union government increased MSP from Rs 18.68 in 2021 to Rs 23 per kg by 2024. Meanwhile, the state govt reduced its support from Rs 8.80 per kg in 2021 to Rs 6.37 in 2024, despite having announced up to Rs 9.52 in state budgets over the years. Had the state not reduced its support, farmers would have received Rs 32.52 per kg now. The cumulative loss to farmers due to the reduction in the state government’s production incentive is a whopping Rs 355.80 crore,” Sonichen said.
Also, the handling charge -- the portion given to farmers in the processing cost for paddy, from procurement to rice reaching Supplyco outlets -- has remained stagnant since being fixed in 2005, when the state government began paddy procurement. Of the 45 paise per kg (Rs 45 per quintal) of the processing cost, only 12 paise per kg (Rs 12 per quintal) is allocated to farmers as handling charge. Farmers pointed out that while the Union government has increased the processing cost significantly, the handling charges have remained the same in the state.
“This is grossly inadequate as farmers are currently incurring up to Rs 2.40 per kg (Rs 240 per quintal) as a handling charge. While the Centre has raised the processing cost, organised rice mill owners are now taking advantage of the situation without benefiting the farmers,” stated Sony Koithara, a farmer in Thiruvarpp in Kottayam district.
Paddy production far short of requirement
In 1999, a committee of experts appointed by the state government was tasked with providing recommendations to support paddy cultivation in the region. The committee discovered that there was a significant gap of 75% between the internal paddy production and the rice requirement of the population. They advised the government to reduce this gap to 50% within the next 10 years. Surprisingly, instead of narrowing the gap, paddy production in Kerala has actually decreased over the years.
Recent reports indicate that Kerala needs 42 metric tonnes of rice annually, with an average daily requirement of 320 grams per person based on consumption pattern studies. However, the state’s paddy production in 2022-23 was only 5.93 lakh tonnes. K G Padmakumar, special officer and director of the International Research and Training Centre for Below Sea Level Farming (IRTCBSF) in Kuttanad, noted that many farmers abandon paddy cultivation due to insufficient income.
A former member of the 1999 expert committee, Padmakumar said the committee’s recommendation for a 150% higher price for farmers in state compared to the minimum support price set by the Centre. He pointed out that Kuttanad has abundant water resources, making it ideal for integrated farming.